"Hmm, until when do investors have to wait for the price of BTC to rise?"
Following the Federal Reserve (Fed) of the United States (US) intending to lower interest rates, BitMEX co-founder Arthur Hayes believes that the price of the cryptocurrency Bitcoin (BTC) will break through $70,000.
Earlier, Hayes predicted that the price of BTC would reach that level after March 2023, but his expectations did not come true when the Fed raised interest rates three times in a row.
BTC's failure to reach $70,000 is due to the focus on nominal Fed interest rates rather than real interest rates when compared to high nominal US gross domestic product (GDP) growth.
The streak, Hayes thinks the price of BTC will always be affected by various market perceptions, among which are interest rates, inflation and other economic factors.
In his latest blog post called 'Are we there yet', Hayes explains that the common perception reveals that the price of risky financial assets like BTC will plummet when interest rates rise.
Echoing his comments at Korea Blockchain Week, Hayes said that investors' search for positive real results had pushed the BTC price up again on March 10, 2023, where it was up nearly 29%.
There is no denying that BTC has tested the $30,000 zone and failed to break through it several times, but its price is still trading well above $20,000.
Hayes added that unconventional monetary policy, increasing government debt and a changing economic landscape could contribute to BTC rising further from its current price of $26,214.
